Illicit gambling incidents in Kazakhstan have reduced by 22%
Kazakhstan Cracks Down on Illegal Online Gambling
In a concerted effort to combat illegal online gambling, Kazakhstan's National Bank, Ministry of Tourism and Sport, and other state bodies are enforcing a strict prohibition on online casinos and related activities.
This year, there has been a significant decrease in cases of organizing illegal gambling businesses, with a 22.2% drop from 45 to 32 registered incidents. This decrease, however, does not imply a complete eradication of the problem.
The government's approach combines criminal prohibition, banking and crypto regulatory controls, and tightly regulated land-based gambling zones. The legislation explicitly prohibits online casinos and offshore bookmakers, imposing criminal penalties for violations.
The National Bank, in cooperation with relevant ministries, blocks financial flows related to online gambling by restricting transactions linked to such operators. Cryptocurrency use for gambling is also not permitted, and crypto exchanges must be licensed by the Astana International Financial Centre (AIFC), adding a layer of financial regulation and oversight that limits illicit flows.
Legal gambling operators are confined to two designated zones (Shuchinskiy and Kapchagai), tightly regulated in physical locations to limit illegal online activities.
The fight against illegal online gambling is an ongoing process that requires continuous monitoring and action. Over 50 bank accounts used for online casino funding have been identified and blocked.
To counteract online casinos, a cross-departmental meeting was held at the General Prosecutor's Office, focusing on the threats posed by the rise of illegal online gambling. Joint measures were agreed upon to strengthen digital control, block financial flows linked to illegal gambling activities, and enhance financial monitoring.
The punishment for organizing illegal gambling businesses in Kazakhstan may result in imprisonment of up to seven years. The punishment also includes confiscation of property.
Representatives of the National Bank, Ministry of Tourism and Sport, and other interested state bodies participated in the meeting, suggesting coordinated enforcement actions, including monitoring, regulation, and public awareness to prevent illegal gambling proliferation online.
While explicit operational details on how Kazakhstan blocks financial flows linked specifically to illegal online gambling activity are sparse in the results, it is clear from the country's legal stance that blocking payment channels and prosecuting offenders form the core of state measures.
The National Bank’s oversight of licensed crypto exchanges within the AIFC further controls how digital assets may or may not be used for gambling.
Illegal online gambling remains a serious threat and requires a systemic response. The ongoing efforts to combat illegal online gambling may lead to further decreases in cases.
- The combination of criminal prohibition, banking and crypto regulatory controls, and the tight regulation of land-based gambling zones in Kazakhstan extends to the explicit prohibition of online casinos and offshore bookmakers.
- Joint measures, including digital control, financial flow blockage related to illegal gambling activities, and enhanced financial monitoring, were agreed upon at a cross-departmental meeting to counteract the rise of illegal online casinos.
